Why not hire him? Pull the permit, inspect the work and pay him as an employee.
Indiana doesn't require a state license but many local units of government do, I hold 26 such license, for our area, and hold almost all our company's license's.
It's not just me and my family I have to think about but every employee who works for us, that will be out of a job if something goes wrong and or he gets caught. with that kind of pressure I can not take that kind of chance.
You are no longer gambling with just your lively hood but are gambling with all who depend upon you. and the fact your are putting your company reputation in this guys hands. just think of how people care about borrowed stuff, they don't, they trash it.
I get asked this all the time, but my response is
"sure let me put you on the payroll and your going to have to pay all the cost it takes me to insure you and the time to go out and make sure the work is to the NEC and to my specification before I put my reputation in your hands, if it is not I will take the job over and your going to foot the bill for the corrections"
well I have never been taken up on it so pretty much they get the message.
here homeoners can pull their own permit under the log cabin law, and have who ever help them do the work, but it has to be kept as a non contract type of deal, for them to do this. I do suport this law, as it is part of our American freedom, but not if it is done in this way to skirt the license requirments as many do. I nailed a couple of those so called handyman type company's doing just this, no license's, no insurance, no bonding, just getting by, by having the home owner pull a home owner permit, then doing the work. problem is then there is a problem and the home owner doesnt have a leg to stand on in trying to get the problems resolved.